1. Field of the Invention
The present invention may be directed generally to a system and method for processing transactions and, more particularly, to a value exchange processing system and method.
2. Description of the Background
Prompt, accurate, and efficient processing of payments may be critical to the success of modern consumer transactions. Sellers, such as merchants, commonly employ known systems and methods to facilitate electronic payments via credit card and debit card, for example, and also employ known systems and methods for payment using cash, check, and other financial instruments.
Promotional systems are a frequent avenue for sellers of products and services to garner new and repeat business. Historically, such systems have been implemented using paper coupons, mail in refunds, and rewards for repeat customers. These coupons, refunds, or rewards, and the overwhelming number of records, data, and correspondence that correspond thereto, are generally handled by the same entity that sells the products, thus necessitating additional man-power and expense for the seller. This additional man-power and expense may be spent outside of the selling process, and thus outside of the core goals of the seller.
Furthermore, the customer who receives the benefits of such promotions is, in the prior art, inconvenienced in order to actually come into possession of the is promotional benefit. Generally, the customer has to physically go to the seller's location, or spend time and money to send items, such as a registration card, to the seller to obtain the corresponding benefits. Even in cases where the benefits may be possessed via telephone, the customer frequently has to deal with being placed repeatedly on hold, or transferred between numerous divisions of the seller, because the promotion may be outside the core business of the seller, and, as such, may be normally a secondary consideration of the seller.
Therefore, the need exists for a promotional system and method that eliminates the need for inconvenience and expense on the part of a consumer to gain the promoted benefit, while also limiting the time and expense spent on the part of the seller outside of the seller's core business.
Gift certificates are regularly used either in addition to, or in place of, physical gifts. The use of a gift certificate may be help consumers avoid the difficulties of additional shopping for gifts, such as for a birthday, holiday, or anniversary. Gift certificate systems have generally been implemented using paper coupons, which coupons may be easily forged or counterfeited, thereby leading to loss on the part of the retailer. These coupons often require, for large retail issuers of gift certificates, an overwhelming number of records, data, and correspondence that correspond to the gift certificate issuance and redemption process. Even the keeping of such complex records often fails to prevent counterfeiting.
Gift certificate issuance and redemption are generally handled by the same entity that sells the products for which the certificate coupons may be redeemed, thus necessitating additional man-power and expense for the seller. This additional man-power and expense may be spent outside of the selling process, and thus outside of the core goals of the seller.
Therefore, the need exists for a gift certificate system and method that eliminates the use of coupons that may be easily counterfeited, which counterfeiting cannot be tracked, while also limiting the time and expense spent on the part of the seller outside of the seller's core business.
With the increasing use of computers by consumers, new forms of non-cash value are available to sellers as promotional tools. For example, many sellers provide reward points, as well as coupons and certificates, in connection with the seller's internet web site. Unfortunately, the accumulation, aggregation, tracking, and redemption of such value by consumers remains cumbersome. Many sellers still require the consumer to print the coupon or certificate and mail it or redeem it at the merchant's retail location. Still other sellers, such as airlines and credit card issuers, provide loyalty points which may be exchanged by the individual consumer, but which are non-negotiable and non-transferable with respect to other sellers and consumers. For example, an airline may offer frequent flyer miles as a promotional value product, and may credit the individual is consumer's individual airline mileage account. However, the credit cannot be applied to goods or services offered by other sellers, and cannot be transferred to other consumers.
Therefore, to simplify use of promotional value, there exists the need for an automated system and method for accumulation, aggregation, tracking, redemption, and exchange of non-cash value products. Additionally, there exists the need to aggregate all value available to an individual consumer from various sellers, whether cash or non-cash in nature, to allow the consumer to select any and all possible combinations of accumulated value to facilitate a particular transaction.